U.S. Rivals to Pay Telmex $140 Million
In Deal to Foster Competition in Mexico

By

David Luhnow Staff Reporter of The Wall Street Journal

Updated Jan. 3, 2001 12:01 a.m. ET

MEXICO CITY -- U.S. rivals will pay Telefonos de Mexico SA nearly $140 million in unpaid debts as part of a landmark deal to promote competition in Mexico's $12 billion telecommunications market and limit the Mexican company's dominant position.

The deal, reached last week but unveiled Tuesday, comes after four years of bitter legal disputes that erupted soon after Mexico opened its market to long-distance competition. The office of the U.S. Trade Representative, which is pressing a case against Mexico before the World...